Analysts flag key signals prior to inflation data

Bitcoin prices found support at the 21-day EMA last week. After closing at the lowest speed of the previous week, we avoided deeper slides. The Bulls managed to defend the $107,000 level, but their momentum stalled just below resistance. From Wednesday through Friday, Bitcoin failed to exceed $112,500, finishing the week at $111,162.

The inability to regain $112,500 has highlighted the recent pause of recovery. Still, by holding over $107,000, it’s still slightly biased for now. Traders are closely watching whether this consolidation will develop into a base or a continuation of a downtrend.

Currently, major support and resistance levels

Currently, $107,000 is the most important line of defense for Bitcoin prices. The breakdown below shifts focus to reducing the support zone at $105,000, $102,500 and potentially $96,000.

The advantage is $112,500 is the first resistance that needs to be supported. If the Bulls are able to close days beyond that level, their next goal is $115,500. There’s $118,000 there. This is a scary barrier that requires close each week to check for updated uptrends.

This week’s outlook

The next week could bring more volatility. US inflation data is scheduled for Thursday, September 11th at 8:30am in the East. A hotter than expected print will cause feelings of risk and drag Bitcoin low, while softer numbers could provide relief to the bull.

If Bitcoin prices can regain $112,500 early in the week, they can push it to $115,500. Otherwise, the market will be vulnerable to another test, low at $107,000.

Market mood: neutral, bullish in trends – support is retained, but resistance is strong.

Next few weeks
More specifically, Bitcoin will ultimately have to clear $118,000 after being convicted to reestablish the uptrend and dodge the bear. Nearly every week that is beyond this level will attract momentum buyers and may improve emotions in October.

If $107,000 is broken instead, the pass will be $105,000 and $102,500, and a possible $96,000 sweep before a durable bottom is found. Given the recent patterns of closure, some analysts have warned that another dip cannot be ruled out.

Terminology Guide:

Bulls/Bulk: Buller or investor who expects prices to rise.

Bears/Bears: Sellers or investors who expect prices to drop.

Support or Support Level: At least initially, the level at which the asset’s price is retained. The more touches you have in support, the more likely it will be to be weaker and will not be able to hold the price.

Resistance or Resistance Level: Opposite of Support. At least at the beginning, there is a high probability of rejecting the price. The more resistance touches and the weaker the more likely it is to be unable to keep the price down.

EMA: Exponential moving average. Moving averages that apply more weight to recent prices than previous prices reduce the lag on moving averages.